9911796707
TMI Blog2025 (2) TMI 289X X X X Extracts X X X X X X X X Extracts X X X X ..... the act, explaining bona fide variation and the undue hardships faced by assessee's. In the present facts of the case though we need not look into the reason behind the bona fides variation, it is apparent that the builder was called upon wide press release to accommodate the purchasers in respect of transferring the benefit of the GST by including the same in the total value of consideration. As a result of which the value that was all generally agreed had to include the GST was payable by the purchasers. Such an adjustment cannot anyway fall within the ambit of section 56(2)(x) of the act. The provisions u/s 56(2)(x) of the act was introduced to curb the practice of receiving any property without consideration or for inadequate consid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me of hearing of the appeal." Brief facts of the case are as under: 2. The assessee is an individual and filed its return of income on 13/07/2018 declaring total income of ₹ 22,55,740 for assessment year under consideration. Case was selected for scrutiny and statutory notice under section 143(2) 142(1) was issued to the assessee. In response to statutory notices, assessee filed requisite details as called for. 2.1. The Ld.AR noted that assessee had booked under construction property during assessment year 2016-17. As there was increase in the GST rates. The Ld.AR noted that the builder reduced agreement value from Rs. 2,63,67,000/- as per the revised sale price of ₹ 2,55,25,375/-. However the Ld.AO was of the opinion that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the builder reduced the sale consideration from Rs. 26367000/- to Rs. 25525375/- in order to provide relief from additional burden of GST@ 12% introduced from 01.07.2017, is of no consequence. As a matter of fact, not a single document has been furnished to demonstrate that assessee had booked the property prior to 01.07.2017. In these circumstances, the reason that builder reduced the sale price due to implementation of GST w.e.f 01.07.2017 is factually incorrect. Therefore, the contention raised in this ground is rejected. The provisions of section 56(2)(x) do not provide for discretion to any authority except in the circumstances provided in first and second proviso. Therefore, AO was correct in making addition of Rs. 389848/-. According ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the delay as observed by Hon'ble Supreme Court in case of Collector Land Acquisition Vs. Mst. Katiji & Ors., reported in (1987) 167 ITR 471 in support of his contentions. 5.1. We place reliance on following observations by Hon'ble Supreme Court in case of Collector Land Acquisition Vs. Mst. Katiji & Ors., reported in (1987) 167 ITR 471 wherein, Hon'ble Court observed as under:- "The Legislature has conferred the power to condone delay by enacting section 51 of the Limitation Act of 1963 in order to enable the courts to do substantial justice to parties by disposing of matters on de merits". The expression "sufficient cause" employed by the Legislature is adequately elastic to enable the courts to apply the law in a meaningful ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al. 7. On merits, the Ld.AR submitted that the only issue raised by the assessee is on account of the addition made under section 56(2)(x) of the act being the difference between the agreement value and the stamp value. 7.1. The Ld.AR submitted that, the said property was on 30/10/2015 for a total sale consideration of Rs. 2,63,67,000/-. The currently wide notification dated 01/07/2017 goods and service tax was made applicable on the unbilled amount on sale of flats under construction at 12% as compared to 5.5% that was applicable previously. Subsequently a press release was issued by the Ministry of Finance department of revenue on 15/06/2017 wherein the builders were expected to pass on the benefit of lower tax burden under GST regime t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the act, explaining bona fide variation and the undue hardships faced by assessee's. 8.1. In the present facts of the case though we need not look into the reason behind the bona fides variation, it is apparent that the builder was called upon wide press release to accommodate the purchasers in respect of transferring the benefit of the GST by including the same in the total value of consideration. As a result of which the value that was all generally agreed had to include the GST was payable by the purchasers. Such an adjustment cannot anyway fall within the ambit of section 56(2)(x) of the act. 8.2. In our considered opinion, the provisions under section 56(2)(x) of the act was introduced to curb the practice of receiving any property ..... X X X X Extracts X X X X X X X X Extracts X X X X
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